Minutes - 03/09/2016 - Police Pension Fund BoardVILLAGE OF OAK BROOK
BOARD OF TRUSTEES OF THE POLICE PENSION FUND - Minutes
March 9, 2016 APPROVED AS WRITTEN √
OR AS AMENDED BY BOARD OF TRUSTEES
OF THE POLICE PENSION FUND ON April 27, 2016
1. CALL TO ORDER:
The Special Meeting of the Board of Trustees of the Oak Brook Police Pension Fund was called
to order by President Vel Torlo at 7:02 p.m. in the Upper Level Conference Room of the Samuel
E. Dean Board Room of the Butler Government Center, 1200 Oak Brook Road, Oak Brook,
Illinois.
2. ROLL CALL:
The roll was called with the following persons
PRESENT: President Vel Torlo, Vice President Alan Feldman, Secretary Edward Caspers,
Trustee Hitesh Patel, Trustee Benjamin Kadolph
ABSENT: None
IN ATTENDANCE: Todd Schroeder of Lauterbach & Amen, Spencer Klein and Terese Krafchek
of MB Financial, Courtney Cervantes and Dan Pazur of Lowery Asset Consulting, Pension Clerk
Rose Kane
3. BOARD COMMENTS:
4. APPROVAL OF MINUTES:
a. Approval of Regular Meeting Minutes of January 20, 2016
Motion by Secretary Caspers, seconded by Trustee Kadolph, to approve the Minutes of the
March 9, 2016 Special Board Meeting as written. VOICE VOTE: Motion carried.
5. PENDING BUSINESS: None presented.
6. NEW BUSINESS:
a. Discussion/action regarding investment recommendation
Lowery Consulting representatives discussed changes/recommendations regarding the
international funds’ portion of the portfolio. Lengthy discussion ensued.
Motion by Trustee Patel, seconded by Vice President Feldman, to direct Lowery to sell
Harbor and Virtus.
ROLL CALL:
Ayes: 5--Vice President Feldman, Secretary Caspers, Trustee Patel, Trustee Kadolph,
President Torlo
Nays: 0 – None
Absent: 0 – Motion carried.
Motion by Vice President Feldman, seconded by Secretary Caspers, to direct Lowery to
use the liquidated funds to buy as follows:
• Baron - $1 million
• Harding Loevner - $500,000
• FMI - remainder < or = to $1.5 million
BOARD OF TRUSTEES OF THE POLICE PENSION FUND
Minutes Page 1 of 3 March 9, 2016
ROLL CALL:
Ayes: 5--Vice President Feldman, Secretary Caspers, Trustee Patel, Trustee Kadolph,
President Torlo
Nays: 0 – None
Absent: 0 – Motion carried.
Motion by Vice President Feldman, seconded by Trustee Patel, to move $5,000 in cash to
the operating account. VOICE VOTE: Motion carried.
Lowery Asset Consulting and MB Financial representatives exited the meeting at approximately
7:49 p.m.
b. Discussion and action regarding 2016 Actuarial Assumptions
Mr. Schroeder presented the Actuarial Valuation report. Discussion ensued regarding the
contribution recommendation and the Village’s actuarial report. More detail was requested from
Mr. Schroeder regarding background. Consensus to table the vote on the 2016 Actuarial
Assumptions until the Second Quarterly meeting in April.
Mr. Schroeder exited the meeting at approximately 8:47 p.m.
c. Discussion/action regarding Request for Proposal responses
Strategic Capital’s Performance Analysis proposal was discussed.
The Request for Proposal responses were reviewed and discussed at length, and it was
determined that the following investment firms would be eliminated from further consideration:
• Clifton Larson Allen Wealth Advisors – no public pension clients
• Investment Performance Services, LLC
• Strategic Capital Investment Advisors – no public pension clients
• The Bogdahn Group – lost top analyst
Consensus to email a supplemental question regarding performance comparisons, to be crafted
by Trustee Patel and Vice President Feldman, to the following investment firms:
• Dahab Associates, Inc.
• Marquette Associates, Inc.
• PFM Asset Management, LLC
• Sawyer Falduto Asset Management, LLC
• Taiber Kosmala & Associates
Consensus that there was no need to send the supplemental query to Lowery Asset Consulting
or MB Financial Bank.
d. Discussion regarding sharing of agendas and minutes
Brief discussion ensued and Trustee Kadolph agreed to talk with the Active pension members to
determine if they would like to receive the minutes, and he suggested that meeting agendas could
be emailed to them for now.
It was announced that the next regular meeting is scheduled for April 27, 2016, with the Trustee
Election being held at 6:00 p.m. on April 21, 2016.
BOARD OF TRUSTEES OF THE POLICE PENSION FUND
Minutes Page 2 of 3 March 9, 2016
7. ADJOURNMENT:
Motion by Trustee Kadolph, seconded by Secretary Caspers, to adjourn the Board of
Trustees of the Police Pension Fund meeting at 9:54 p.m. VOICE VOTE: Motion carried.
ATTEST:
Edward J. Caspers /s/
Edward J. Caspers, Secretary
Board of Trustees of the Police Pension Fund
BOARD OF TRUSTEES OF THE POLICE PENSION FUND
Minutes Page 3 of 3 March 9, 2016